Summary Financial Statements for the Year Ended 31 December, 2019

On behalf of the Board of Directors (‘Board’), I am pleased to provide the results of Trinidad and Tobago NGL Limited (‘TTNGL’ and ‘Company’) for the year ended 31 December 2019. For 2019, the Company recorded an after-tax profit of TT$129.5 million. Earnings per share for the year was TT$0.84.

For the year, the share of profit from TTNGL’s investment in its underlying asset Phoenix Park Gas Processors Limited (‘PPGPL’) was TT$90.3 million, compared to TT$242.6 million in 2018. Performance at PPGPL was adversely impacted by lower Mont Belvieu product prices, coupled with lower Natural Gas Liquids (‘NGL’) production and an increase in feedstock costs. The decline in prices was driven by the continued supply imbalance of natural gas production in North America and the resulting excess supply of NGL supply to the market. This, combined with geopolitical factors such as the trade war between the United States and China resulted in product prices being 23.4% lower than in 2018. NGL production from gas processing decreased by 9.5% from 2018 and was a result of a combination of both lower and drier natural gas volumes in Point Lisas. PPGPL’s earnings for 2019 were also impacted by the recognition of the accounting impact on the business of International Financial Reporting Standards (IFRS) 9 and 16: Financial Instruments and Leases respectively.

To mitigate these negative impacts, PPGPL remained focussed on maintaining its competitiveness in its core Caribbean markets, sustaining the high operating availability and reliability of its facilities (greater than 99%) and on prudent cost and cash management. In addition, significant strides were made in securing new sources of revenue from condensate processing and from the acquisition of new assets.

During 2019, PPGPL progressed its product trading operation and ended the year close to finalising the acquisition of NGL assets based in North America. This acquisition will align with PPGPL’s internationalisation thrust for shareholder value creation and diversification through exploration of all relevant growth opportunities along the NGL value chain.